2 Long Islanders Charged In $27M Investment Fraud Scheme: Feds

OYSTER BAY, NY — Two Oyster Bay residents were arrested Monday in connection to a nearly decade-long scheme that bilked investors out of more than $27 million, prosecutors said.

In a criminal complaint unsealed in Brooklyn federal court, Sherry Xue Li, 50, and Lianbo Wang, 45, have been charged with wire fraud conspiracy, money laundering conspiracy, and conspiracy to defraud the United States "by obstruction the Federal Election Commission's administration of campaign finance laws."

Prosecutors say Li and Wang tricked more than 150 investors — many of whom were foreign nationals living outside the U.S. — into investing in a fictitious project to construct a private educational institution in rural New York, by claiming it had the support of prominent politicians. Many of the investors were reportedly promised green cards, access to politicians, and dividends for their financial support of the institution, dubbed the Thompson Education Center.

The pair is accused of then using those funds to pay for personal expenses, like jewelry and upscale meals, as well as contributions to prominent politicians.

"In furtherance of their scheme, Li and Wang also acted as 'straw donors' for foreign nationals to unlawfully contribute to campaigns supporting U.S. politicians and political committees," court documents state. "Among other things, Li and Wang promised foreign nationals access to U.S. political events and politicians in exchange for a fee."

As an example, the pair charged 12 foreign nationals $93,000 each for admission to a 2017 fundraising event with then-President Donald Trump, according to prosecutors. They then reportedly used the funds to unlawfully make $600,000 in political contributions in their own names to the joint fundraising committee hosting the fundraiser.

"Li, Wang, and their foreign national guests attended the June 28, 2017 fundraiser and took photos with the then-President of the United States," court documents state. "Li and Wang later used a photograph of Li and the President taken at the fundraiser to solicit investment in the (Thompson Education Center) Project."

The two Oyster Bay residents are naturalized U.S. citizens from China. However, it's illegal for a "foreign national, directly or indirectly, to make a contribution or donation of money ... in connection with a Federal, State, or local election," court documents read. It's also illegal for someone to solicit, accept, or receive such a contribution or donation of money from a foreign national.

Li and Wang are scheduled to appear in Brooklyn federal court on Monday.